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The demand for a commodity is given by Q = 30 + lP + a, where (,2 denotes quantity, P denotes price, and n denotes
The demand for a commodity is given by Q = 30 + lP + a, where (,2 denotes quantity, P denotes price, and n denotes factors other than price that determine demand. Supply for the commodityr is given by Q = \"y\" + 1;, where 1.! denotes factors other than prioe that determine supply. Suppose that u and 1.1 both have a mean of zero, have variances a: and 0'3, and are mutually uncorrelated. Salve the two simultaneous equations to show how Q and P depend on u and 1
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